Super Jumbo Mortgages
Home costs are on the rise from coast to coast, and alongside rising costs comes a rising demand for larger home loans. That’s where we come in — here at MortgageBase, we specialize in providing super jumbo loans and refinances for folks across the nation. We provide a variety of loan products including all of the following:
- Interest Only Super Jumbo Mortgages
- Super Jumbo 30, 20, and 15-Year Fixed Rate Loans
- Super Jumbo Fixed-Term ARMs
Super Jumbo Mortgage FAQ
Curious about our super jumbo mortgages? Take a look at our list of frequently asked home loan questions. If you don’t find the answers here, don’t hesitate to give us a call. We’re here to connect you with all the answers, and hopefully, the ideal loan to earn you that dream home. Here are some of the most popular questions we encounter:
What Is a Super Jumbo Mortgage?
Unlike jumbo home loans, super jumbo mortgages are home loans which are more than $1 million. Here at MortgageBase, we can lend up to $10 million for primary residence and vacation residence purchases.
What Are the Terms?
Terms vary loan by loan. Explore our loan products, or get in touch with us if you have any questions surrounding our loan terms. We’ll work with you to identify a loan product that’s best suited to your demands and finances.
What Are Your Loan Rates?
At MortgageBase, we provide competitive loan rates. You can request a custom rate quote for your home loan, or reach out to us learn more. Currently, home loan rates on jumbo and super jumbo loans are comparable or better than rates that you’ll find for a conforming home loan or traditional mortgage.
Super Jumbo Loan Qualification Guidelines
Great Credit: If you’re looking for a larger loan, you’ll need to have great credit. Shoot for a FICO credit score of 750 or higher. You may receive lower rates if your credit score is considered exceptional, or above 800.
Steady Income: You should have a steady source of income to attain a large home loan. Lenders prefer buyers with documented income. If you’re self-employed, be sure to keep tax return records to prove your income.
Low Debt-to-Income Ratio: In addition to a steady income, you should have a low debt-to-income ratio. Lenders seek buyers who have a debt-to-income ratio that’s about 45 percent or less. Be mindful of your monthly bills, and compare those costs to your income. Reduce your debt-to-income ratio to become eligible for these non-conforming loans.
Some Money Down: Be prepared to put some money down on your home investment. While the requirements for a down payment are flexible, you will have to invest some money upfront to purchase your property. You may have to pay 20 percent of the value of the home or more in order to attain a mortgage. Ask us about our loan-to-value requirements.
Savings: Lenders look for borrowers with a bit of money in the bank. Plan on having 6 to 12-months worth of savings, or reserves, set aside in your bank account. These reserves provide loan security should you lose a source of income.
If you’re debating about the right loan for your next home, you’ll have to weigh the benefits of adjustable rate mortgages (or ARMs) and the benefits of fixed rate mortgages. So which do you choose? Here’s our guide on the best mortgage option for your situation — take note, we’ll delve into the details of our interest only loans, a type of ARM, as well.
Fixed Rate Mortgages
Fixed rate mortgages are completely stable. These home loans are ideal for folks who value a secure loan structure. With a fixed rate loan, the interest rate on the value of the loan is fixed for the duration of the loan. You’ll know exactly what to expect on your monthly bill, since the rate isn’t liable to fluctuate as it does with ARMs.
Home buyers often choose fixed rate mortgages if they want a secure loan, a concrete interest rate, and stable monthly payments. Fixed rate mortgages are also an excellent option for homeowners who are planning on paying down the full value of the loan, instead of selling their home before the loan term ends.
In addition, some home buyers opt for fixed rate mortgages since you can reduce the term of the mortgage by paying more than the minimum due on their monthly bills. With every additional payment, you can reduce the length of the term of your mortgage — and that means that you could end up shaving off years of payments for your home loan, all while building equity in your home. Learn more about our fixed rate super jumbo mortgages.
Adjustable Rate Mortgages
Adjustable rate mortgages provide low rates up front, and adjustable rates during the final term of the loan. ARMs are a popular option, thanks in part to their initial term. With an ARM, you’ll pay a low initial rate on your home loan. During the first term of the loan (usually a period of 5, 7, or 10 years), the borrower must pay a fixed rate. Thereafter, and for the rest of the life of the loan, the borrower will pay an adjustable rate. During this term, the interest rate on the loan can fluctuate based on an “index”. The index is determined by a third party source (LIBOR or the U.S. Treasury), and it fluctuates in accordance with changes in national and international economies.
Home buyers often opt for ARMs if they don’t plan on staying in a home for the duration of the mortgage. Also, home buyers may be able to refinance their ARM, switching to a fixed rate mortgage at some point in their ownership of the home.
Home buyers who have an adjustable rate mortgage can also reduce their monthly payments. While the term of the loan will remain fixed, if a borrower chooses to pay more than their minimum monthly payment, they’ll reduce all of the payments due thereafter. The life of the loan won’t change, but payments can shrink over the lifetime of the loan. Learn more about our super jumbo ARMs.
Our Third Option: Interest Only Super Jumbo Mortgages
For a loan with even more financial flexibility upfront, consider our interest only super jumbo mortgages. Our interest only super jumbo mortgages are a form of adjustable rate loan, yet they have an even more advantageous initial fixed period. During the initial period of the mortgage, the borrower only has to pay interest on the value of the loan — borrowers aren’t required to pay down the principal (or outstanding balance) on the mortgage. After the initial interest-only period, the borrower begins paying the principal on the loan, in addition to an adjustable interest rate.
Interest only super jumbo mortgages are ideal for home buyers who value financial freedom when purchasing a home. During the initial term of the loan, the borrower won’t have a very low monthly bill for their home. Learn more about our interest only super jumbo mortgages.
Ready to Get Started?
If you’re ready to shop around for the best home loan to fit your needs, you can get a free rate quote in minutes. Count on MortgageBase as your super jumbo home loan provider. We offer diverse mortgage products and competitive rates on our home loans.